The report titled "Hiding in plain sight: The health care gender toll" was authored by Deloitte, a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax, and related services. Published in 2023, this comprehensive report addresses the significant disparity in healthcare costs between men and women in the United States.
It unveils a staggering $15 billion annual difference in out-of-pocket healthcare expenses borne by employed women compared to their male counterparts, highlighting the widening effects of wage disparity between genders. The report's aim is to shed light on the often-overlooked financial burden placed on women in healthcare and to encourage businesses and policymakers to reexamine benefit coverage and affordability, thereby promoting gender equity in healthcare access and costs.
In keeping with SheThrives' mission of empowering women, this article isn't just an eye-opener—it's a call to action. The moment for change is now. Let's address this inequity and ensure that every woman can thrive.
The Actuarial Value Gap: How it Affects Women's Wallets
One of the most striking findings of the Deloitte report is the "actuarial value gap." Despite having equal opportunities for health insurance, the actual value of employer-sponsored coverage for women is $1.34 billion less than that for men.
"Overall, women pay $15.4 billion more in out-of-pocket health care expenses than men," highlights the report.
Breaking Down the Actuarial Value Gap
- Out-of-Pocket Expenditures: While 46% of men tend to have $1,000 or less in out-of-pocket expenditures, only 35% of women can say the same.
- 18% More in Annual Expenses: On average, women pay 18% more than men in annual out-of-pocket health care expenses, not including premiums.
- The $12 Solution: Shockingly, to close this actuarial value gap, it would generally cost employers less than $12 per employee per year.
Through Deloitte's analysis, they were able to identify key data points important to the health benefits gap story. Explore a visual breakdown of them in this infographic, also included in download of the report.
The Cumulative Financial Toll: $15.4 Billion
This gap doesn't merely represent numbers on a ledger; it symbolises the choices women have to make daily between affording healthcare and other basic needs. As the gender wage gap persists, this additional financial burden could further entrench gender inequality.
"The combination of higher health care expenditures and the gender wage gap can negatively impact the financial and health status for employed women," states the Deloitte report.
A Call to Action: What Employers Can Do
- Examine Benefit Coverage: Employers should scrutinize their existing benefit plans and work toward making healthcare more affordable for their female employees.
- Promote Transparency: Full disclosure of all costs related to healthcare can help employees make informed decisions.
- Advocate for Policy Change: Businesses can use their influence to lobby for broader systemic changes that will advance women’s health equity.
It is Time for a Change
The data is clear: women are shouldering a disproportionate financial burden when it comes to healthcare. This inequity isn't just a 'women's issue'—it's a societal problem that requires urgent attention.
By understanding and acting upon the findings of Deloitte’s report, employers have the opportunity to not only rectify this glaring inequity but also to invest in the health and well-being of half the population.
For a deeper dive into the research, download the full Deloitte report.